CHICAGO — An Illinois federal judge has dismissed a lawsuit accusing a reinsurer of breaching its contract with a mortgage insurance provider by failing to disclose the benefits it derived from the captive reinsurance arrangement, finding the contract did not impose such a requirement.

However, in the July 5 order, Judge Ruben Castillo of the U.S. District Court for the Northern District of Illinois allowed the plaintiff to amend her breach of contract claim. The judge also dismissed with prejudice the claims of breach of the implied covenant of good faith and fair dealing, violation of the Real Estate Settlement ...